Retail’s Major Problem and How to Fix it
When it comes to retail problems - fit inconsistency across brands ranks high. This size-related issue is brought about because the industry does not have a universal system. Unfortunately, this discrepancy in sizing causes a negative impact on both retailers and customers alike.
For customers, when shopping online, the guessing game of trying to work out the perfect fit can cause frustration and confusion. In addition, products often need to be returned due to an undesirable fit.
One of the problems an online retailer faces as a result of poor product fit is bearing the brunt of returns. The financial impact of a single return shouldn’t be underestimated. Each time a shopper sends back a product, the retailer is responsible for return shipping costs and if the customer wants a new item, the retailer has to cover those costs as well.
goes on to add that apart from “the cost of processing returns, in terms of staff and resources...there’s also the risk that items returned may not be easily resold.”
asserts that “nearly 40% of online apparel orders are being returned (with 70% of those returns due to problems with fit), costing the retailer anywhere from $3 to $12 per order.”
It’s also been forecasted that return costs in the U.S.A will amount to.
More than ever, retail industries are faced with two issues:
- To develop a solution that reduces returns and lowers overall costs
- To ensure the solution improves customer loyalty and retention